Nine Dragons Paper (2689) H2 24/25 earnings summary

Executive summary

• Sales volume reached a record 21.5 million tonnes, up 9.6% year-over-year, driving a 6.3% increase in revenue to RMB63,240.5 million.

• Net profit surged 177.3% to RMB2,201.7 million, with gross profit up 26.9% to RMB7,245.1 million.

• Strategic focus on integrated pulp and paper production, cost control, and digital transformation supported resilience and profitability.

• Major capacity expansions in Beihai and Jingzhou commenced, further strengthening market position.

Financial highlights

• Revenue increased 6.3% year-over-year to RMB63,240.5 million, mainly from packaging paper (90% of revenue).

• Gross profit margin improved from 9.6% to 11.5% due to lower raw material costs.

• Operating profit rose 48.8% to RMB3,936.6 million.

• Net profit attributable to equity holders increased 135.4% to RMB1,767.1 million.

• Basic EPS increased 137.5% to RMB0.38.

Outlook and guidance

• FY2026 expected to see both opportunities and challenges amid policy support and global uncertainties.

• Continued focus on pulp and paper integration, cost control, and high value-added products.

• No interim or final dividend recommended for FY2025.